MEASURING THE QUALITY OF FINANCIAL REPORTING IN INDIA'S IRON AND STEEL SECTOR THE IMPACT OF IND-AS ADOPTION

This study examines the value relevance of accounting information reported under Indian Generally Accepted Accounting Principles (IGAAP) and Indian Accounting Standards (IND-AS) for the Indian Iron and Steel sector. Using key financial metrics—Book Value Per Share (BVPES), Earnings Per Share (EPS), and Share Price (SP)—the study assesses their relationship before and after the adoption of IND-AS. The findings reveal that under IGAAP, accounting information had limited explanatory power (R-square: 0.034), with weak and statistically insignificant relationships between financial metrics and share prices. In contrast, the adoption of IND-AS significantly enhanced the value relevance of accounting information, with a dramatic increase in explanatory power (R-square: 0.972) and statistically significant relationships, particularly for EPS. This improvement underscores the effectiveness of IND-AS in addressing the limitations of IGAAP by incorporating fair value principles, improving transparency, and aligning Indian financial reporting with global standards. The results emphasize the critical role of IND-AS in enhancing the decision-usefulness of financial statements in capital-intensive industries like Iron and Steel. KEY WORDS : IND-AS, Value relevance, EPS,SP